The FED expressed in a statement that the decision to keep the interest rate unchanged was unanimous. The statement noted that recent indicators point to economic activity continuing to expand at a solid pace. Employment gains remain strong and the unemployment rate remains low, while inflation has fallen over the past year but remains high, the statement said. The statement added that progress towards the Federal Open Market Committee's (FOMC) two percent inflation target has not been achieved in recent months.
The statement said that the Committee believes that the risks to achieving employment and inflation targets have moved towards a better balance over the past year, emphasizing that the economic outlook is uncertain and the FOMC continues to be extremely cautious about inflation risks. In the statement, it was decided to keep the federal funds rate target range at 5.25-5.50 percent, and it was stated that any adjustment to the interest rate would be based on an assessment of incoming data, the evolving outlook and the balance of risks.
